On January 1, 2014, Pharma Company Purchased a 90% Interest $\begin{array}{lr}\text { Inventory } & \$ 80,000 \\\text { Plant and equipment (net) } & 240,000 \\\text { Goodwill } & 591,111\end{array}$

On January 1, 2014, Pharma Company purchased a 90% interest in Sandy Company for $2,800,000.At that time, Sandy had $1,840,000 of common stock and $360,000 of retained earnings.The difference between implied and book value was allocated to the following assets of Sandy Company: $\begin{array}{lr}\text { Inventory } & \$ 80,000 \\\text { Plant and equipment (net) } & 240,000 \\\text { Goodwill } & 591,111\end{array}$
The plant and equipment had a 10-year remaining useful life on January 1, 2014.
During 2014, Pharma sold merchandise to Sandy at a 20% markup above cost.At December 31, 2014, Sandy still had $180,000 of merchandise in its inventory that it had purchased from Pharma.In 2014, Pharma reported net income from independent operations of $1,600,000, while Sandy reported net income of $600,000.
Required:
A.Prepare the workpaper entry to allocate, amortize, and depreciate the difference between implied and book value for 2014.
B.Calculate controlling interest in consolidated net income for 2014.